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I post this with some hesitation as it's not weight related, but I thought I'd give it a shot. I recently purchased a 2003 Litespeed Siena (frame is new - never ridden). When installing the Cane Creek IS6 headset that came with the package, I noticed that the top cartridge bearing, although fully seated into the headtube, stays exposed by a couple or few millimeters. Has anyone heard or seen this before? It doesn't look safe, although there is absolutely no play in the headset. By the way, frame is an atrocious 1431 grams size small.

Even after complete installation with the addition of the spacer (single 2mm provided) and the stem, the cartridge bearing rises above the head tube. Practically identical to what bikerjulio posted. It's so odd. I have to assume this was meant to work this way. What were they thinking?

Headset bearings often stand proud by one or two mm and this is deliberate. It is intended to ensure that the bearing is acting freely. If you imagine a bearing with no space (or in extremis one that actually is too small) then the bearing action is compromised by touching of the frame.